Japan’s NTT Urban Development buys Melbourne office for A$72m

Japanese group NTT Urban Development Corporation has bought an office building in Melbourne from an Australian Unity fund for A$72m (US$46.3m).

The Tokyo-headquartered firm purchased the property at 200 Victoria St in Carlton through its local subsidiary, UD Australia Pty Ltd, the buyer said.

200 Victoria St

The property offered 7,912 sq.m. of lettable space on the northern edge of Melbourne’s CBD, and had been held in Australian Unity’s diversified property fund.

The fully-occupied asset was anchored by the EPA (Environment Protection Authority), with a weighted average lease expiry by income of about two years.

Australian Unity said 200 Victoria St had a book value of A$72m, but was most recently valued at A$59.2m in October last year.

Melbourne office assets have attracted plenty of local and overseas investors in recent times.

In February, Singaporean-based ARA Asset Management and Canadian institutional investor QuadReal Property Group acquired a grade-A office development at 200 Victoria Parade in East Melbourne, as part of a new Australian joint venture.